When Are Childcare (Daycare) Costs Going to Go Down? (low income, leasing)

[bayarea-girl]

Since people are loosing their jobs left and right, loosing their homes, and people moving out of CA why are daycares still so expensive? When will the fess be less? I have two kids and for childcare pay $1600/mo. and I think those are good prices but not in this economy!

[nmnita]

Originally Posted by bayarea-girl

Since people are loosing their jobs left and right, loosing their homes, and people moving out of CA why are daycares still so expensive? When will the fess be less? I have two kids and for childcare pay $1600/mo. and I think those are good prices but not in this economy!

I doubt you will see much change unless they start losing a lot of business. Why would they drop prices, either mom and dad are both working and need child care of one is not working and it makes little difference how much it costs, they are not using it. Do I think the prices are crazy? Sure do, but don't look for a big drop. Do you expect the doctors, private schools, dentists and restaurants to start dropping prices?

Well restaurants maybe will offer most 2 for 1s, but otherwise many servises will keep their prices about the same, even the cost of stamps are going up.
Nitra

[bayarea-girl]

Oh-man! You make sense, but one can wish!

[nmnita]

Originally Posted by bayarea-girl

Oh-man! You make sense, but one can wish!

Well I wish for you the prices would go down. I just can't believe what you are paying, it is almost highway robbery but I know you have to put your little ones in a place that you feel is safe and good for them..Our children are our most prized possessions. (my mind is blank, I don't think I spelled that right, but you know what I mean anyway.)

Nita

[Roaddog]

My sister in-law runs a daycare from her home, the amount of money she charges is amazing and she has a waiting list of people wanting her to watch their children, if you like kids and want to make a lot of money it's a good buisness to be in.

[Charles]

Originally Posted by bayarea-girl

Since people are loosing their jobs left and right, loosing their homes, and people moving out of CA why are daycares still so expensive? When will the fess be less? I have two kids and for childcare pay $1600/mo. and I think those are good prices but not in this economy!

Consider the costs to the daycare; have they gone down?

Has the rent or lease or mortgage of the daycare gone down? The salaries to the daycare's employees gone down? The utilities, supplies, and maintenance costs? Does the daycare need to purchase new technology (computers, musical instruments, etc.)?

So, if those haven't gone down, how can its prices come down?

[killer2021]

Have you actually tried shopping around? How about posting an ad on craigslist and seeing what type of offers you get. I know college students would probably be willing to take care of your kids for less than 1,600/month depending on the requirements. College students generally have the highest unemployment rates.

You are right that unemployment is high but a business isn't going to lower their prices until they absolutely have to.

Has the rent or lease or mortgage of the daycare gone down? The salaries to the daycare's employees gone down? The utilities, supplies, and maintenance costs? Does the daycare need to purchase new technology (computers, musical instruments, etc.)?

So, if those haven't gone down, how can its prices come down?

It is all about competition. If the market says we need daycare and we are only paying 1,200 per month then the market will find a way to satisfy the demand. Competition will find a way to satisfy the demand. Maybe instead of leasing a building the babysitter will just come to your house, no need to lease a building or pay utilities. You can see what I mean. As for the primary day care, if they can't pay the bills then they go out of business.

[MommiePreMed]

$1600 a month for two children is a steal. From my experience lower prices often mean substandard care.

[killer2021]

From my experience lower prices often mean substandard care.

Yup, no such thing as a free lunch.

[nmnita]

Originally Posted by Charles

Consider the costs to the daycare; have they gone down?

Has the rent or lease or mortgage of the daycare gone down? The salaries to the daycare's employees gone down? The utilities, supplies, and maintenance costs? Does the daycare need to purchase new technology (computers, musical instruments, etc.)?

So, if those haven't gone down, how can its prices come down?

you have a good point, I still think the prices are a bit out of line, but again, I don't know. Here is a situation that does blow my mind: our granddaughter pays $130.00 per week for one child in OKC> This is a mom and daughter who do it out of thier home and are licensed for 12 children, which they always are full. The daughter gets wick because she is low income (now remember how much they get per child) the mortgage is the same whether they have X number of children or are not even in business. Just this past week they infomred our granddaughter prices are going up to $150 a week. They are not raising them for the kids they have now, but all future kids will be $150 and if our granddaughter and hubby have another baby the price will be $150 per child..

They really would love to have another baby next year after granddaughter graduates from nursing school this summer. She got her BS a few years ago but decided to return to get a nursing degree..He plans to go back to school full time in the fall. If they have a second child between child care and student loans they will never have a penny. THis is not the fault of the child care gals but with the cost of child care they are thinking about not even having a second child...

Something is wrong here..child care giver on WICK, probably making about $600 per week clear (no taxes) and the working mom and dad can barely make ends meet.

Nita